Getting a bank account is one of the main challenges faced by bitcoin based startups. In many countries, even those companies who have managed to secure a bank account are constantly under the threat of it being shut down. the recent events in Australia where the banks shutdown accounts belonging to many bitcoin exchanges without giving any reason is one such example of the highhandedness of traditional financial institutions when it comes to alternative currency like bitcoin.
A recent article on one of the cryptocurrency news site shows that the conditions in the United Kingdom is no better than other places. Even though the UK government seems to be receptive towards bitcoin and digital currencies, the ground reality seems to be a bit more different.
Many bitcoin companies in the United Kingdom currently don’t seem to have the same privileges as other businesses operating in the region. The bitcoin companies don’t get to open a standard corporate account even if they have all the required clearances from the government.
There is a speculation that the United Kingdom’s Chancellor of the Exchequer, George Osborne may make some changes to the existing system. However, it is not sure how long it will take for the bitcoin companies to see any significant changes in the system.
Bitcoin is already on the verge of changing the face of global financial system. Banks and financial institutions have come to realize the importance of bitcoin and the technology behind it. They have now started to explore ways to incorporate blockchain technology into their operations. Banks have come together to form a consortium to create an interbank network powered by blockchain technology so that they can reduce the time taken to transfer funds between banks across geographical borders in less time and at less costs compared to conventional method.